Sentences with phrase «accruing cash value in the policy»

Overtime you will accrue cash value in your policy that should make your policy more efficient.

The death benefit could be assigned to the employee's loved ones and the accruing cash value in the policy could ultimately be used by the employer to fund payments (retirement income) of the key employee.

Not exact matches

Part of the strategy is to work with mutual life insurance companies that allow flexibility in borrowing from the policy and allow the cash value to accrue regardless of outstanding policy loans.

In addition to providing a death benefit, whole life policies accrue cash value.

Or you may wish to lock in a steady rate with a permanent life insurance policy, which accrues cash value, and pays a guaranteed death benefit, even if you live to be 100 years old.

In addition to providing death benefits, some policies also accrue a cash value that you can collect at any time if the need arises.

In addition, like other whole life policies, they accrue cash value.

In addition to remaining in effect as long as you pay your monthly premiums and keep any other obligations per your contract with the insurance company, these type of policies also accrue «cash value»In addition to remaining in effect as long as you pay your monthly premiums and keep any other obligations per your contract with the insurance company, these type of policies also accrue «cash value»in effect as long as you pay your monthly premiums and keep any other obligations per your contract with the insurance company, these type of policies also accrue «cash value».

Yes, the cash value in the policy takes some time to accrue in the same way that any other business requires start up capital to get going... but when the policy is funded, the magic begins.

Whether the return of cash value is guaranteed, as in a whole life or guaranteed UL policy OR whether based upon the financial markets, as in IUL and Variable UL policies, the idea behind permanent insurance is to accrue a nest egg of usable cash value within a life insurance policy.

In general, cash value that accrues within the life insurance policy not taxable if not withdrawn from the policy.

2 The adjusted total premium is the initial single premium plus any underwritten increases, less any partial surrenders and any applicable surrender charges in excess of policy gain and any loans and accrued loan interest, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value.

Keep in mind that loans against the policy will accrue interest and decrease both death benefit and cash value by the amount of the outstanding loan and interest.

Much like a Whole Life insurance policy, Universal Life insurance has cash value that accrues in tax - deferred savings over time.

A split dollar plan must address who will have access to the cash value that accrues in a permanent life insurance policy.

Funding a split dollar plan is a way to reward a key employee while accruing cash value in a whole life insurance policy that can serve as a ready source of funding for the employer.

This means that the cash value accrued in your life insurance policy must be spent if you're seeking to qualify for a state Medicaid program unless another option is pursued.

That means if you have enough money in the cash value, you can use that to skip premium payments entirely, letting the accrued interest do the work — but keep in mind that this can typically only be done after the first year of the policy, and only if there's at least enough cash value in the policy to keep the policy inforce for another 60 days.

While initial premiums are higher than with a typical term policy, it is possible for coverage to continue until death of the insured, and cash value may accrue in the policy on a tax - deferred basis that can be used to help meet financial needs during your life.

This means that like other «non-exempt» assets, the cash value accrued in your life insurance policy will have to be spent down in order to qualify for your state's Medicaid program.

Cash value accrues in the policy and it can provide you with a source of potential cash flow in the form of loans or withdrawCash value accrues in the policy and it can provide you with a source of potential cash flow in the form of loans or withdrawcash flow in the form of loans or withdrawals.

For those that are critical of these policies, they are quick to point out term is cheaper and that these policies don't accrue much cash value in the early years.

So, if a policy's cash value has accrued substantially, it could be a good source for paying off higher interest debt and for supplementing retirement income in the future.

If your policy has been in force long enough it will accrue cash value that can be borrowed against.

In many cases a whole life insurance policy will provide some sort of cash value — although that cash value is likely to be far less than the death benefit that would accrue if the policyholder were to die.

However, a second option is that the policy instead has a cash value, and that value increases over time as more premiums are paid in and interest is accrued.

Permanent policies accrue a cash value that can offer protection in later years.

The reason is because the policy accrues no cash value (except in the case of Return of Premium Term Life Insurance, where you can get a full refund for all the premiums you've paid at the end of the policy period).

A whole life insurance policy accrues cash value and pays dividends which can be used in different ways while the policy is in place.

In addition, if the loan balance and accrued interest exceed the cash value of the policy, it will be terminated.

Keep in mind that loans against the policy will accrue interest and decrease both death benefit and cash value by the amount of the outstanding loan and interest.

This can be confusing to shoppers who believe that, when they die in old age, they will receive the death benefit provided by the term life insurance policy and the accrued cash value.

In addition to providing death benefits, some policies also accrue a cash value that you can collect at any time if the need arises.

If you are concerned with accruing cash equivalency value or having more policy control with coverage flexibility, then it may be worth your time to invest in a more permanent form of life insurance.

For some, a permanent policy may make the most sense because it provides lifetime coverage (provided you pay your premiums on time and in full) and accrues cash value.

The interesting aspect of these policies is that you can surrender your policy and get the accrued cash value in your hands provided you have a substantial amount of cash value.

Additionally, the cash - value funds accrued with a permanent life policy are tax deferred in many cases.

In fact, the controller alleged that John Hancock has a practice of avoiding paying death benefits, instead collecting premiums from the accrued cash value of a policy, even when the premium payments stop coming from the insured.

You can pay back the money plus accrued interest or, if you choose to not pay back the money borrowed, it will simply be deducted when the policy's death benefit is paid, or else deducted from the cash value when the policy is cashed in.

Much like a Whole Life insurance policy, Universal Life insurance has cash value that accrues in tax - deferred savings over time.

A permanent life insurance policy, such as whole life or universal life, can offer you this option, and can be used as loan collateral, or to accrue cash value to be used in case of emergency.

A split dollar plan must address who will have access to the cash value that accrues in a permanent life insurance policy.

This means that like other «non-exempt» assets, the cash value accrued in your life insurance policy will have to be spent down in order to qualify for your state's Medicaid program.

The cash value is guaranteed to accrue at a certain rate in a whole life insurance policy as long as the illustrated premium payments are made, but not necessarily with a universal life or variable universal life contract.

In other words, most life insurance agents are fixated on the death benefit only, and thus operate under the mistaken idea that a cash value life policy will take at least 10 years to mature and begin to accrue adequate cash value for self financing.

The cash value account accrues through premiums paid into the policy, when premiums are paid in larger amounts than the actual cost of insurance.

Funding a split dollar plan is a way to reward a key employee while accruing cash value in a whole life insurance policy that can serve as a ready source of funding for the employer.

For those that are critical of these policies, they are quick to point out term is cheaper and that these policies don't accrue much cash value in the early years.

Yes, the cash value in the policy takes some time to accrue in the same way that any other business requires start up capital to get going... but when the policy is funded, the magic begins.

This means that the cash value accrued in your life insurance policy must be spent if you're seeking to qualify for a state Medicaid program unless another option is pursued.